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Audit Report - 1985 SALINA AIRPORT AUTHORITY Salina, Kansas AUDIT REPORT Year 1985 A. H. LECKBAND & CO., CPA, CHARTERED Certi£ied Public Accountants Accounting Bldg., 719 East Craw£ord Salina, Kansas 67401 SALINA AIRPORT AUTHORITY TABLE OF CONTENTS Auditor's Report 1 Financial Statements Balance Sheet Statement o£ Revenues, Expenses and Changes in Equity Statement o£ Changes in Financial Position 2 3 4 Summary o£ Capital Expenditures 5 Notes to Financial Statements 6-7 SUPPLEMENTAL INFORMATION Financial Statements-Airport Revolving Account Balance Sheet Statement o£ Revenues, Expenses and Changes in Equity Statement o£ Changes in Financial Position 8 9-10 11 Capital Expenditures-Airport Revolving Account 12-13 Financial Statements-Building Revenue Account Balance Sheet Statement o£ Revenues, Expenses and Changes in Equity Statement o£ Changes in Financial Position 14 15 16 Capital Expenditures-Building Revenue Account 17 Bonds o£ Indebtedness (Summary) General Obligation Bonds Building Revenue Bonds-Series 1984 18 19 20 Reconcilement o£ Fiscal Agency Account 21 Schedule o£ Investments 22 Insurance in Force 23 ADDITIONAL INFORMATION REQUIRED BY OMB CIRCULAR A-128 Schedule o£ Federal Assistance Programs Summary o£ Completed Federal Assistance Programs Auditor's Comments on Compliance 24 25 26 Auditor's Report on Internal Accounting Control 27-28 A. H. LECKBAND & co. CERTIFIED PUBLIC ACCOUNTANTS 719 EAST CRAWFORD SALINA, KANSAS 67401 A. H. LECKBAND, C.P.A. EUGENE O. HARRI50N, C.P.A. THOMA5 G. ARNETT, C.P.A. MEMBER5 AMERICAN IN5TITUTE OF CERTIFIED PUBLIC ACCOUNTANT5 ACCOUNTING DEF'ARTMENT (913) B27'7244 DATA PROCE551NG OEF'ARTMENT (913) B27'7245 January 29, 1986 The Board o£ Directors Salina Airport Authority Salina, Kansas We have examined the £inancial statements listed in the table o£ contents o£ the Salina Airport Authority, Salina, Kansas, £or the year ended December 31, 1985. Our examination was made in accordance with generally accepted auditing standards and the Minimum Standard Audit Program approved by the State Municipal Accounting Board, and accordingly included such tests o£ the accounting records and such other auditing procedures as we considered necessary in the circum- stances. We have previously examined and reported on thE' £inancial statements £or the preceding year, and have given an unquali£ied opinion on them. In our opinion, the a£orementioned £inancial statements present £airly the £inancial position o£ the General Operating Fund o£ the SElina Airport Authority at December 31, 1985, and the results CI£ its oper- ations and changes in its £inancial position £or the year then ended, in con£ormity with generally accepted accounting principles applied on a basis consistent with that o£ the preceding year. The accompanying supplemental in£ormation listed in the table o£ contents is not necessary £or a £air presentation of the £inancial statements, but is presented as additional analytical data. This information has been subJected to the tests and other auditing procedures: applied in the examination o£ the f~nancial statements mentioned abclve and, in our opinion is £airly stated in all material respects in relation to the financial statements taken as a whole. A. H. LECKBAND & CO., CPA, CHARTERED ~.4.~ THOMAS G. ARNETT CPA In charge of and actively engaged in this audit Page 1 SALINA AIRPORT AUTHORITY GENERAL OPERATING FUND BALANCE SHEET ASSETS CURRENT ASSETS Cash in banks Certi£icates of deposit Account receivable Notes receivable Prepaid bond interest TOTAL CURRENT ASSETS RESTRICTED ASSETS Certi£icates o£ deposit Provision £or Bond Reserve Provision £or Replacement and Depreciation Reserve Fund £or Non-Recurring Main- tenance and Capital Improvements Savings Account-proceeds o£ land sale TOTAL RESTRICTED ASSETS FIXED ASSETS Equipment Buildings Other improvements Land Less-accumulated depreciation TOTAL FIXED ASSETS OTHER ASSETS Long-term notes receivable TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Account payable Payroll deductions Bond payable De£erred rent income Accrued bond interest TOTAL CURRENT LIABILITIES LONG-TERM LIABILITIES Bonds payable EQUITY TOTAL LIABILITIES AND EQUITY December 31 1985 1984 $ 223,783.98 $ 178,604.32 212,000.00 1,120,000.00 141,630.00 9,382.10 9,853.72 3,978.75 $ 586,796.08 $1,312,436.79 $ 20,000.00 $ 18,000.00 20,000.00 5,000.00 40,000.00 6,990.00 46,990.00 $ 63,000.00 $ 860,519.20 6,725,034.97 3,068,000.86 673,000.00 $11,326,555.03 2,507,427.46 $ 673,602.71 5, 623, 651. 67 2,322,655.96 478,000.00 $9,097,910.34 2,092,010.38 $ $ 8,819,127.57 $7,005,899.96 $ 56,114.35 65,998.02 $ $ 9,509,028.00 $8,447,334.77 -------------- -------------- ------------- ------------- $ 156,980.00 $ 2,803.11 2,320.36 75,000.00 55,000.00 12,526.46 5,916.03 7,739.17 10, 571. 88 255,048.74 $ 73,808.27 $ 440,000.00 515,000.00 8,813,979.26 7,858,526.50 $ 9,509,028.00 $8,447,334.77 -------------- -------------- ------------- ------------- The notes to £inancial statements are an integral part o£ this~ statement. Page 2 SALINA AIRPORT AUTHORITY GENERAL OPERATING FUND STATEMENT OF REVENUE, EXPENSES AND CHANGES IN EQUITY January 1 to December 31 1985 1984 REVENUES Operating revenues Income £rom mill levy Proceeds o£ Airport Development Aid Program grants Property sales Interest on property sales Interest on investments $1,089,903.00 73,278.43 736,356.82 6,990.00 9,218.18 94,802.28 TOTAL REVENUES $2,010,548.71 EXPENSES O££ice and administration Maintenance Bond interest and expenses Depreciation $ 274,142.88 317,519.59 45,536.04 417,897.44 TOTAL EXPENSES $1,055,095.95 EXCESS OF REVENUES OVER EXPENSES $ 955,452.76 EQUITY-January 1 7,858,526.50 EQUITY-December 31 $8,813,979.26 ------------- ------------- $1,023,840.86 345,800.28 514,616.21 2, 401. 00 10,472.21 166,773.00 $2,063,903.56 $ 193, 321. 94 269,047.93 27,418.71 337,734.33 $ 827,522.91 $1,236,380.65 6,622,145.85 $7,858,526.50 ------------- ------------- The notes to £inancial statements are an integral part o£ this statement. Page 3 SALINA AIRPORT AUTHORITY GENERAL OPERATING FUND STATEMENT OF CHANGES IN FINANCIAL POSITION FUNDS WERE PROVIDED BY: Excess o£ revenues over expenses Add: Expense not requiring working Depreciation Disposition o£ £ixed assets Decrease in .restricted assets Decrease in long-term receivables Increase in long-term liabilities Decrease in working capital capital TOTAL FUNDS PROVIDED FUNDS WERE APPLIED TO: Capital expenditures Depreciation on assets disposed o£ Reduction of long-term liabilities Increase in working capital TOTAL FUNDS APPLIED CHANGES IN WORKING CAPITAL Current Assets-Increase (Decrease) Cash in banks Certi£icates o£ deposit Accounts receivable Notes receivable Prepaid bond interest Current Liabilities-Decrease Accounts payable Payroll deductions Bonds payable De£erred rent income Accrued bond interest (Increase) TOTAL INCREASE (DECREASE) IN WORKING CAPITAL January 1 to December 31 1985 1984 $ 955,452.76 $1,236,380.65 337,734.33 11,899.81 10,000.00 9,853.72 400,000.00 $2,005,868.51 ------------- ------------- $1,703,807.54 7,999.81 135,000.00 159,061.16 $2,005,868.51 ------------- ------------- $( 398,456.92) 540,000.00 168.90 5,433.75) 2,922.92 30,000.00 5,916.03) 4,223.96) $ 159,061. 16 417,897.44 2,480.36 16,010.00 9,883.67 906,881. 18 $2,308,605.41 ------------- ------------- $2,231,125.05 2,480.36 75,000.00 $2,308,605.41 ------------- ------------- $ 45,179.66 (908,000.00) 141,630.00 ( 471. 62 ) ( 3,978.75) (156,980.00) ( 482.75) ( 20,000.00) ( 6,610.43) 2,832.71 $ (906,881. 18) ------------ ------------ ------------- ------------- The notes to £inancial statements are an integral part o£ this: statement. Page 4 SALINA AIRPORT AUTHORITY GENERAL OPERATING FUND CAPITAL EXPENDITURES January 1 to December 31 1985 1984 Equipment $ 189,396.85 $ 46,385.88 Buildings 1,101,383.30 1,063,230.77 Other improvements 745,344.90 594,190.89 Land 195,000.00 TOTAL CAPITAL EXPENDITURES $2,231,125.05 $1,703,807.54 ------------- ------------- ------------- ------------- The notes to £inancial statements are an integral part o£ this statement. Page 5 THE SALINA AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS December 31, 1985 1. The Salina Airport Authority is governed by a Board o£ £ive directors appointed by the City Commission o£ the City o£ Salina, Kansas. The £ollowing directors served during the period o£ our examination: Ed Pogue, Chairman Thomas J. Kennedy, Vice-Chairman Robert D. Wilbur, Secretary-Treasurer Kenneth Stephenson, Assistant Secretary Charles Walker Joe Cloud, term expired 4-26-85 Carl Engstrom, term expired 5-26-85 2. The £ollowing o£ficials, appointed by the Salina Airport Authority Board o£ Directors, served during the period o£ our examination: Timothy F. Rogers, Executive Vice-President Donald C. Kneubuhl, Director o£ Operations 3. Summary o£ accounting policies A. The General Operating Fund is composed o£ two accounte¡-the Airport Revolving Account and the Building Revenue Account. The Airport Revolving Account is used £or general airport operaticlns and the Building Revenue Account is £or segregation o£ monies and establish- ment o£ reserves as provided by the bond ordinances. The provisions o£ the bond ordinances have been complied with. B. The accrual basis o£ accounting is used. C. Depository security is adequate £or all accounts. D. Investments are stated at cost. E. Fixed assets are stated at cost. Depreciation is computed using the straight-line method based on estimated use£ul lives ëLS £ollows: Equipment Buildings Other improvements 5 - 10 years 15 - 30 years 20 years Page 6 SALINA AIRPORT AUTHORITY NOTES TO FINANCIAL STATEMENTS (continued) December 31, 1985 4. Composition o£ cash balances Planters Bank and Trust Co., Salina, Kansas First National Bank and Trust Co., Salina, Kansas National Bank of America, Salina, Kansas 5. Composition o£ certi£icates o£ deposit First National Bank and Trust Co., Salina, National Bank o£ America, Salina, Kansas Planters Bank & Trust Co., Salina, Kansas First Bank and Trust Co., Salina, Kansas Kansas $ 61,692.40 90,447.44 78,634.14 $ 230,773.98 ------------- ------------- $ 20,000.00 6,000.00 126,000.00 100,000.00 252,000.00 $ ------------- ------------- The Board o£ Directors authorized the issuance by the Salj.na Airport Authority o£ Building Revenue Bonds, Series 1985, in the principal amount of $900,000.00 on December 20, 1985. The bonds were sold on January 17, 1986 subsequent to the date o£ these £inanciaJ. statements. A summary o£ this Bond Issue £ollows: 6. BUILDING REVENUE BONDS-SERIES 1985 Date o£ Bonds Date o£ Issue Interest rate December 1, 1985 January 17, 1986 Variable, Maximum 10.04X-Minimum 8.00X December 1, 1995 Maturity Date SCHEDULE OF PAYMENTS Due in Year Bond Principal 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 $ 50,000.00 70,000.00 70,000.00 70,000.00 90,000.00 90,000.00 110,000.00 110,000.00 110,000.00 130,000.00 $ 900,000.00 ------------ ------------ Page 7 SALINA AIRPORT AUTHORITY AIRPORT REVOLVING ACCOUNT BALANCE SHEET ASSETS CURRENT ASSETS Cash in banks Certi£icates o£ deposit Accounts receivable TOTAL CURRENT ASSETS FIXED ASSETS Equipment Buildings Other improvements Land Less-accumulated depreciation TOTAL FIXED ASSETS RESTRICTED ASSETS-SAVINGS TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable Payroll deductions De£erred rent Due to Building Revenue Account TOTAL CURRENT LIABILITIES EQUITY TOTAL LIABILITIES AND EQUITY December 31 1985 1984 $ 54,702.40 39,720.84 50,000.00 $ $ 141,282.00 195,984.40 $ 89,720.84 $ 860,519.20 2,994,999.66 3,068,000.86 $ 673,602.71 2,126,817.29 2,322,655.96 $6,923,519.72 1,379,515.75 $5,123,075.96 991,687.60 $5,544,003.97 $4,131,388.36 $ 6,990.00 $ $5,746,978.37 $4,221,109.20 ------------- ------------- ------------- ------------- $ 156,980.00 $ 2,803.11 2,320.36 12,526.46 907,685.63 $ 172,309.57 $ 910,005.99 5,574,668.80 3,311,103.21 $5,746,978.37 $4,221,109.20 ------------- ------------- ------------- ------------- The notes to £inancial statements are an integral part o£ this! statement. Page 8 SALINA AIRPORT AUTHORITY AIRPORT REVOLVING ACCOUNT STATEMENT OF REVENUES, EXPENSES AND CHANGES IN EQUITY TOTAL OPERATING REVENUES January 1 to December 31 1985 1984 $ 382,685.81 $ 336,318.26 10,924.67 28,083.44 30,159.86 23,447.64 43,257.00 2,184.74 1,525.00 77,907.41 69,211. 11 16, 731. 06 7,722.31 7,444.62 4,868.72 10, 131. 36 3,127.01 2,057.77 $ 584,553.54 $ 473,234.25 $ 6,990.00 $ 736,356.82 514,616.21 73,278.43 345,800.28 12,048.44 54,092.49 $ 828,673.69 $ 914,508.98 $1,413,227.23 $1,387,743.23 REVENUES OPERATING REVENUES Building rents Agricultural land rents Other land rents Hangar rents Other rents Fixed base operator Landing fees Commissions Ramp rents Miscellaneous income OTHER REVENUES Sale o£ Property Proceeds from Airport Development Aid program grants Income £rom mill levy Interest on investments TOTAL OTHER REVENUES TOTAL REVENUES EXPENSES OPERATING EXPENSES Of£ice and Administration O££ice salaries Of£ice supplies Postage Car expense Travel expense Agricultural land expense Legal and auditing Insurance Engineering Payroll taxes Employees retirement Telephone Industrial development program Promotion Other o££ice and administration $ 82,903.81 $ 80,190.54 3,090.47 2, 561. 03 3,050.13 1,302.97 2,636.18 5,883.04 1,365.30 5,110.97 4,510.54 28,010.32 22,663.85 43,975.57 32, 861. 08 18,646.67 6,795.03 14,636.13 12,856.53 7,050.06 6,953.02 5,071. 34 4,028.83 15,000.00 9,000.62 29,971. 88 8, 351. 15 $ 271,401. 01 $ 187,076.05 SUB-TOTAL (continued) Page 9 SALINA AIRPORT AUTHORITY AIRPORT REVOLVING ACCOUNT STATEMENT OF REVENUES, EXPENSES AND CHANGES IN EQUITY (continued) Maintenance Building maintenance Runways, taxiways, and ramps Equipment, gas, oil and repairs Utilities Grounds maintenance Janitor supplies Maintenance salaries Snow removal Air£ield lighting equipment Fire department expense Other maintenance expense January 1 to December 31 1985 1984 $ 30,354.23 $ 38,039.54 23,887.10 27,245.34 39,627.86 37,583.98 49, 121. 00 37,369.83 12,229.20 1,287.71 812.24 108,015.89 90, 361. 43 2,545.75 225.00 5,400.26 15,297.09 2,602.80 24,086.56 28,035.80 SUB-TOTAL Depreciation $ 305,164.68 $ 268,963.93 $ 301,462.32 $ 219,478.59 $ 878,028.01 $ 675,518.57 $ 535,199.22 $ 712,224.66 3,311,103.21 2,598,878.55 1,728,366.37 $5,574,668.80 $3,311,103.21 -----------_.- ------------- -----------_.- ------------- TOTAL EXPENSES EXCESS OF REVENUES OVER EXPENSES EQUITY-January 1 TRANSFERS FROM BUILDING REVENUE ACCOUNT EQUITY-December 31 The notes to £inancial statements are an integral part o£ thisl statement. Page 10 SALINA AIRPORT AUTHORITY AIRPORT REVOLVING ACCOUNT STATEMENT OF CHANGES IN FINANCIAL POSITION FUNDS WERE PROVIDED BY: Excess o£ revenues over expenses Add: expenses not requiring working capital Depreciation Disposition o£ £ixed assets Decrease in working capital Trans£ers £rom Building Revenue Account TOTAL FUNDS PROVIDED FUNDS WERE APPLIED TO: Capital expenditures Buildings trans£erred £rom Building Revenue Account-Book Value Depreciation on assets disposed o£ Increase in restricted assets Increase in working capital TOTAL FUNDS APPLIED CHANGES IN WORKING CAPITAL Current Assets-Increase (Decrease) Cash in banks Certi£icates o£ deposit Accounts receivable Current Liabilities-Decrease (Increase) Accounts payable Payroll deductions De£erred rent Due to Building Revenue Account TOTAL INCREASE (DECREASE) IN WORKING CAPITAL $ January 1 to December 31 1985 1984 $ 535,199.22 $ 712,224.66 301,462.32 2,480.36 1,728,366.37 $2,567,508.27 ------------- ------------- $1,479,561. 75 234,516.18 2,480.36 6,990.00 843,959.98 $2,567,508.27 ------------- ------------- $ 14,981.56 ( 50,000.00) 141,282.00 (156,980.00) ( 482.75) ( 12,526.46) 907,685.63 843,959.98 ------------- ------------- 219,478.59 11,899.81 768,204.29 $1,711,807.35 ------------- ------------- $1,703,807.54 7,999.81 $1,711,807.35 ------------- ------------- $ (378,875.85) 50,000.00 2,922.92 (442,251. 36) $ (768,204.29) ------------- ------------- Page 11 The notes to £inancial statements are an integral part o£ this: statement. SALINA AIRPORT AUTHORITY AIRPORT REVOLVING ACCOUNT CAPITAL EXPENDITURES EQUIPMENT Con£erence table and chairs Radio equipment Air compressor Nova airless paint sprayer 1984 Chevrolet pickup 1984 Ford Station Wagon 1984 IHC tractor O££ice equipment Hesston tractor Regancy Scanner Mobile Radio Bush Hog Mower 1985 Dodge Pick-Up Restaurant equipment ProJector Case & Screen Idaho Norland snow blower- AIP 04 TOTAL EQUIPMENT BUILDINGS Bldg. 310-addition Federal Mogul bldg. Bldg. 2617-addition Co££ee shop entry Bldg. 595-entry and roo£ Bldg. 650-new roo£ Bldg. 512-addition Equipment shed Bldg. 207-maintenance shop addition A.S.I. Hangar door A. S. 1. Hangar Terminal bldg. improvement Maintenance shed Scienti£ic eng, bldg. 512 improvement Keystone Railway Equipment bldg. improvement Bldg. 959 improvement Eldorado Motor Corporation bldg. Federal Express bldg. improvement TOTAL BUILDINGS (continued) Page 12 January 1 to December 31 1985 1984 $ $ 4,597.20 3,322.56 6,932.00 1,062.57 6, 891. 55 9,697.00 13,883.00 4, 961. 92 10,360.00 430.90 875.00 5,430.00 9,400.00 464.84 494.19 156,980.00 $189,396.85 $ 46,385.88 $ $ 55,000.00 841,359.41 50,000.00 3,050.00 16,085.00 9,200.00 40,052.34 44,420.78 4,063.24 35,000.00 300,000.00 18,121.55 15,338.50 20,000.00 36,367.00 42,360.00 45,511. 52 32, 121. 43 $544,820.00 $1,063,230.77 SALINA AIRPORT AUTHORITY AIRPORT REVOLVING ACCOUNT CAPITAL EXPENDITURES Continued January 1 to December 31 1985 1984 OTHER IMPROVEMENTS Runway lighting AIP-02 Taxiway overlay AIP-03 Runway overlay AIP-04 Pave parking at Beech Fencing Xetec paving Runway lighting AIP-06 Runway AIP-04 Taxiway overlay AIP-03 Development plan AIP-05 MMA paving Federal Express paving $ $ 176,826.59 396,619.13 3,526.00 10, 991. 17 6,228.00 45,001. 32 6,227.25 5,479.76 609,107.71 39,436.04 1,396.47 20,950.75 17,745.60 TOTAL OTHER IMPROVEMENTS $ 745,344.90 $ 594,190.89 TOTAL CAPITAL EXPENDITURES $1,479,561. 75 $1,703,807.54 ------------- ------------- ------------- ------------- The notes to £inancial statements are an integral part o£ thif~ statement. Page 13 SALINA AIRPORT AUTHORITY BUILDING REVENUE ACCOUNT BALANCE SHEET ASSETS CURRENT ASSETS Cash in banks Certi£icates o£ deposit Accounts receivable Notes receivable Prepaid bond interest Due £rom Airport Revolving Account TOTAL CURRENT ASSETS RESTRICTED ASSETS Certi£icates o£ deposit Provision £or Bond Reserve Provision for Replacement and Depreciation Reserve Fund £or Non-Recurring Maintenance and Capital Improvement TOTAL RESTRICTED ASSETS FIXED ASSETS Buildings Land Less-accumulated depreciation TOTAL FIXED ASSETS OTHER ASSETS Long-term notes receivable TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Bonds payable Deferred rent income Accrued bond interest TOTAL CURRENT LIABILITIES LONG-TERM LIABILITIES Bonds payable EQUITY TOTAL LIABILITIES AND EQUITY December 31 1985 1984 $ 169,081. 58 $ 138,883.48 212,000.00 1,070,000.00 348.00 9,382.10 9,853.72 3,978.75 907,685.63 $ 390,811. 68 $2, 130,401. 58 $ 20,000.00 $ 18,000.00 20,000.00 $ 40,000.00 5,000.00 $ 40,000.00 63,000.00 $3,730,035.31 673,000.00 $4,403,035.31 1,127,911. 71 $3,275,123.60 $ 56,114.35 $3,496,834.38 478,000.00 $3,974,834.38 1,100,322.78 $2,874,511. 60 $ 65,998.02 $3,762,049.63 ------------- ------------- $ 75,000.00 $5, 133,911. 20 ------------- ------------- $ 55,000.00 5,916.03 10,571. 88 7,739.17 $ 82,739.17 $ 71,487.91 440,000.00 3,239,310.46 $3,762,049.63 ------------- ------------- 515,000.00 4,547,423.29 $5,133,911.20 ------------- ------------- Page 14 The notes to £inancial statements are an integral part o£ thisl statement. SALINA AIRPORT AUTHORITY BUILDING REVENUE ACCOUNT STATEMENT OF REVENUES, EXPENSES AND CHANGES IN EQUITY REVENUES OPERATING REVENUES Building rents Agricutural land rents Other land rents Hangar rents Tank farm rent Other rents $ TOTAL OPERATING REVENUES $ OTHER REVENUES Sale o£ property Interest on sale o£ property Interest on investments $ TOTAL OTHER REVENUES $ TOTAL REVENUES $ EXPENSES OPERATING EXPENSES Agricutural land expenses Building maintenance Engineering Bond interest expense Expense relating to bond Depreciation $ issues TOTAL EXPENSES $ EXCESS OF REVENUES OVER EXPENSES $ EQUITY-January 1 TRANSFERS TO AIRPORT REVOLVING ACCOUNT January 1 to December 31 1985 1984 412,754.44 31,767.47 13,295.00 45,000.00 2,532.55 505,349.46 9,218.18 82,753.84 91,972.02 597,321. 48 2,158.12 8,352.79 4,002.12 45,536.04 583.75 116,435.12 177,067.94 420,253.54 4,547,423.29 $ 3,239,310.46 (1,728,366.37) EQUITY-December 31 -------------- -------------- $ 411,350.97 30,016.29 6,987.50 57,251. 85 45,000.00 $ 550,606.61 $ 2,401.00 10,472.21 112,680.51 $ $ 125,553.72 $ 676,160.33 $ 5,020.89 84.00 1,225.00 21,892.97 5,525.74 118,255.74 $ 152,004.34 $ 524,155.99 4,023,267.30 $4,547,423.29 ------------- ------------- Page 15 The notes to £inancial statements are an integral part o£ thil3 statement. SALINA AIRPORT AUTHORITY BUILDING REVENUE ACCOUNT STATEMENT OF CHANGES IN FINANCIAL POSITION FUNDS WERE PROVIDED BY: Excess o£ revenues over expenses Add: expenses not requiring working capital Depreciation Buildings trans£erred to Airport Revolving Account-Book value Decrease in restricted assets Decrease in long-term receivable Increase in long-term liabilities Decrease in working capital TOTAL FUNDS PROVIDED FUNDS WERE APPLIED TO: Capital expenditures Trans£ers to Airport Revolving Account Reduction in long-term liabilities Increase in working capital TOTAL FUNDS APPLIED CHANGES IN WORKING CAPITAL Current Assets-Increase (Decrease) Cash in banks Certi£icates o£ deposit Accounts receivable Notes receivable Prepaid bond interest Due £rom Airport Revolving Account Current Liabilities-Decrease (Increase) Bonds payable De£erred rent income Accrued bond interest January 1 to December 31 1985 1984 $ 420,253.54 116,435.12 234,516.18 13,000.00 9,883.67 1, 750, 841. 16 $ 2,554,929.67 -------------- -------------- $ 751,563.30 1,728,366.37 75,000.00 $ 2,554,929.67 -------------- -------------- $ 30,198.10 ( 858,000.00) 348.00 ( 471. 62) ( 3,978.75) ( 907,685.63) 20,000.00) 5,916.03 2,832.71 TOTAL INCREASE (DECREASE) IN WORKING CAPITAL $(1,750,841.16) -------------- -------------- $ 524,155.99 118,255.74 10,000.00 9,853.72 400,000.00 $1,062,265.45 ------------- ------------- $ 135,000.00 927,265.45 $1,062,265.45 ------------- ------------- $( 19,581. 07) 490,000.00 168.90 5,433.75) 442,251.35 30,000.00 5,916.03) 4,223.96) $ 927,265.45 ------------- ------------- The notes to £inancial statements are an integral part o£ thif~ statement. Page 16 SALINA AIRPORT AUTHORITY BUILDING REVENUE ACCOUNT CAPITAL EXPENDITURES January 1 to December 31 1985 1984 BUILDING Ag Chem Building 1021 improvements Schwans Tech Center $ 156,563.30 400,000.00 $ LAND Hocking 80 acres Johnson 80 acres (downpayment) 185,000.00 10,000.00 TOTAL CAPITAL EXPENDITURES $ 751,563.30 $ ------------ ------------ ------------ ------------ The notes to £inancial statements are an integral part o£ thi~i statement. Page 17 General Obligation Bonds Building Revenue Bonds Series 1973-2 Building Revenue Bonds Series 1984 SALINA AIRPORT AUTHORITY BONDS OF INDEBTEDNESS December 31, 1985 Original Issue $ 790,000.00 350,000.00 400,000.00 $1,540,000.00 ------------- ------------- Page 18 Principal Paid $ 655.000.00 350,000.00 20,000.00 $1,025,000.00 ------------- ------------- Outstanding Balance $ 135,000.00 380,000.00 $ 515,000.00 ------------- ------------- THE SALINA AIRPORT AUTHORITY GENERAL OBLIGATION BONDS December 31, 1985 Date o£ Issue: Amount o£ Issue: Interest Rate: Maturity Date: Principal Paid: Outstanding Balance: February 1, 1967 $790,000.00 4.25, 3.375, 3.4% February 1, 1988 $655,000.00 $135,000.00 Schedule of Payments Due in Year 1986 1987 1988 Bond Principal $ 45,000.00 45,000.00 45,000.00 $135,000.00 ----------- ----------- Page 19 Bond In1:erest $ 3,825.00 2,295.00 765.00 $ 6,885.00 ----------- ----------- SALINA AIRPORT AUTHORITY BUILDING REVENUE BONDS-SERIES 1984 December 31, 1985 Date o£ Issue: Amount o£ Issue: Interest Rate: Maturity Date: Principal Paid: Outstanding Balance: Schedule o£ Payments Due in Year Bond Principal 1986 1987 1988 1989 1990 1991 1992 1993 1994 $ 30,000.00 30,000.00 30,000.00 40,000.00 40,000.00 50,000.00 50,000.00 50,000.00 60,000.00 $380,000.00 ----------- ----------- *Interest rate to be calculated on each interest payment date £or the ensuing six months period. Page 20 May 1, 1984 $400,000.00 * May 1, 199.1 $400.000.00 Bond Interest $ * * * * * * * * * $ ----------- ----------- SALINA AIRPORT AUTHORITY RECONCILEMENT OF FISCAL AGENCY ACCOUNT December 31, 1985 BALANCE WITH FISCAL AGENCY-January 1, 1985 REMITTANCES Matured bonds Interest coupons Bond commission and postage TOTAL REMITTANCES AND BEGINNING BALANCE RETURNS Cancelled bonds Interest coupons Commission and postage retained BALANCE WITH FISCAL AGENCY-December 31, 1985 Page 21 $45,000.00 5,355.00 $45,000.00 5,355.00 $ 50,355.00 $50,355.00 50,355.00 $ ---------- ---------- AIRPORT REVOLVING ACCOUNT Certi£icates o£ deposit BUILDING REVENUE ACCOUNT Certi£icates o£ deposit TOTAL GENERAL OPERATING Fund SALINA AIRPORT AUTHORITY SCHEDULE OF INVESTMENTS December 31, 1985 Balance 1-1-85 $ 50,000 1,070,000 $1,120,000 ---------- ---------- Page 22 Purchases Year 1985 $ 100,000 772,000 $ 872,000 --------- --------- Redemptions Year 1985 $ 150,000 1,630,000 $1,780,000 ----------- -------.--- Balance 12-31-85 $ 212,000 $ 212,000 ---------- ---------- Workmen's Compensation and Employer's Liability Comprehensive General Liability Owners', Landlords', and Tenants' Liability Rental Buildings- Industrial Airport Terminal and Rental Buildings Vehicles and Equipment Public Employees Blanket Bond Public o££icials and Employees liability SALINA AIRPORT AUTHORITY INSURANCE IN FORCE December 31, 1985 Type o£ Coveraqe Bodily inJury and property damage Bodily inJury and property damage Fire and lightning, extended coverage, vandalism and malicious mischie£-loss o£ rents Fire and lightning, extended coverage, vandalism and malicious mischie£ Liability Physical damage Medical payments Uninsured motorists Honesty blanket position bond coverage Errors & omissions including asbestos & pollution coverage on a claims made basis Page 23 Amount o£ Coverage Co-Insurance Percentaqe $ 100,000.00 500,000.00 500,000.00 566,570.00 4,124,000.00 90Y. 500,000.00 519,204.00 2,000.00 25/50,000.00 100,000.00 1,000,000.00 SALINA AIRPORT AUTHORITY SCHEDULE OF FEDERAL ASSISTANCE CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER 20.106 For the year ended December 31, 1985 Program Title DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Taxiway lighting Federal Aviation Administration Taxiway overlay Federal Aviation Administration Runway overlay snow blower Federal Aviation Administration Master plan update 1985-199l Federal Aviation Administration Runway overlay, Fire Station and supporting communications Expendi 1:ures Durino Federal ID Number Year Amount o£ Awards 3-20-0072-02 $( 1,070.12) $ 3-20-0072-03 39,436.04 43,606.32 3-20-0072-04 766,087.71 693,820.62 3-20-0072-05 1,396.47 3-20-0072-06 5,479.76 $ 812,399.98 $736,356.82 ----------.-- ----------.-- ----------- ----------- SCHEDULE OF FEDERAL ASSISTANCE CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER 20.106 For the year ending December 31, 1984 Program Grant Title DEPARTMENT OF TRANSPORTATION Federal Aviation Administration Runway lighting Federal Aviation Administration Taxiway overlay Federal Aviation Administration Runway overlay & snowblower Page 24 Federal ID Number Expenditures Durinçr Year Amount o£ Awards 3-20-0072-02 $ 176,826.59 $160,928.93 3-02-0072-03 396,619.13 353,687.28 3-02-0072-04 3,526.00 $576,971. 72 $514,616.21 ----------- ----------- ----------- ----------- CATALOG OF SALINA AIRPORT AUTHORITY SUMMARY OF COMPLETED FEDERAL ASSISTANCE PROGRAMS FEDERAL DOMESTIC ASSISTANCE For year ended December 31, NUMBEH 20.106 1985 Proqram Title Federal ID Number Expenditures During Year Federal Aviation Administration Taxiway overlay 3-20-0072-03 1983 1984 1985 $ 5,382.16 396,619.13 39,436.04 TOTAL $441,437.33 ----------- ----------- Program Title Federal ID Number Expenditures During Year Federal Aviation Administration Runway overlay and Snow blower 3-20-0072-04 1983 1984 1985 1985 * $ 1,393.09 3,526.00 765,992.71 95.00 TOTAL $771,006.80 ----------- ----------- *Expenditure £or advertising not claimed and not reimbursed For year ended December 31, 1984 Program Title Federal ID Number Expenditures During Year Federal Aviation Administration Runway lighting 3-20-0072-02 1982 1983 1984 1985 $ 5,800.00 14,367.93 176,826.59 TOTAL $196,994.52 ----------- ----------- Page 25 Amounts o£ Awards $ 353,687.28 43,606.32 $397,293.60 ----------- ----------- Amount o£ Awards $ 693,820.62 $693,820.62 ----------- ----------- Amount o£ Awards $ 16,366.14 160,928.93 ( 1,070.12) $176,224.95 ----------- ----------- A. H. LECKBAND & co. CERTIFIED PUBLIC ACCOUNTANTS 719 EAST CRAWFORD SALINA, KANSAS 67401 A. H. LECKBAND, C.P.A. EUGENE O. HARRISON, C.P.A. THOMA5 G. ARNETT, C.P.A ACCOUNTING DEFARTMENT (913) B27'7244 DATA PROCES51NG OEFARTMENT (913) B27'7245 MEMBER5 AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS January 29, 1986 The Board of Directors Salina Airport Authority Salina, Kansas 67401 We have examined the financial statements o£ the Salina Airport Authority for the year ended December 31, 1985, and have issued our report thereon dated January 29, 1986. Our examination was made in accordance with generally accepted auditing standards; the provisions of ~~tandards for Audit o£ Governmental Organizations, Programs, Activit~es, and Functions, promulgated by the U.S. Comptroller General, as they pertain to financial and compliance audits; the provisions o£ the O££ice o£ Management and Budget's (OMB) Compliance-Supplement - Uniform Requirements of Programs £or Grants to State and Local Governments; the provisions o£ OMB's Circular A-128, and accordingly, included such test of thE~ accounting records and such other auditing procedures as we considerE~d necessary in the circumstances. Based on our examination, we found that, for the items teHted, the Salina Airport Authority complied with the material terms and conditions of the £ederal award agreements. Further, based on our examiDat:Lon and the pro- cedures re£erred to above, nothing came to our attention to indicate that the Salina Airport Authority had not complied with the siunificant compli- ance terms and conditions of the awards referred to above. This report is intended solely £or the use of the Salina Airport Author- ity, the cognizant audit agency, and other federal audit agenc~es and should not be used £or any other purpose. A. H. LECKBAND & CO., CPA, CHARTERED ~4.~ Thomas G. Arnett CPA Page 26 A. H. LECKBAND & co. CERTIFIED PUBLIC ACCOUNTANTS 719 EAST CRAWFORD SALINA, KANSAS 67401 A. H. LECKBAND, C.P.A. EUGENE O. HARRISON, C.P.A. THOMA5 G. ARNETT, C.P.A. MEMBER5 AMERICAN IN5TITUTE OF CERTIFIED PUBLIC ACCOUNTANTS ACCOUNTING DEI'ARTMENT (9131 B27'7244 DATA PROCE551NG OE'ARTMENT 1913) B27'7245 January 29, 1986 The Board o£ Directors Salina Airport Authority Salina, Kansas 67401 We have examined the £inancial statements of the Salina AJcrport Authority for the year ended December 31, 1985, and have issued our report thereon dated January 29, 1986. As part o£ our examination, we made a study and evaluation o£ the system of internal accounting control oj: the Salina Airport Authority to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards and the stand- ards for financial and compliance audits contained in the U.S. General Accounting O££ice's Standards £or Audit o£ Governmental Organizations, Programs, Activities, and Functions. For the purpose of this report, we have classi£ied the significant internal accounting controls in the £ollowing categories: Financial Statement Captions Cash and cash equivalents Investments Property and equipment Payables and accrued liabilities Debt Fund Balance Our study included all of the control categories listed above. The purpose o£ our study and evaluation was to determine the nature, timing, and extent o£ per£orming the auditing procedures necessary for expressing an opinion on the entity's £inancial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system o£ internal accounting control taken as a whole or on any of the categories o£ control identi£ied above. Page 27 Salina Airport Authority Page 2 January 29, 1986 The management o£ the Salina Airport Authority is responsible £or estab- lishing and maintaining a system o£ internal accounting control. In ful- £illing this responsibility, estimates and Judgments by management are required to assess the expected bene£its and related cost o£ control procedures. The obJectives o£ a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation o£ £inancial statements in accordance with generally accepted accounting principles. Because o£ inherent limitations in any system o£ internal accounting con- trol, errors or irregularities may nevertheless occur and not be detected. Also, proJection o£ any evaluation o£ the system to £uture periods is sub- Ject to the risk that procedures may become inadequate because o£ changes in conditions or that the degree o£ compliance with the procedures may deteriorate. Our study and evaluation made £or the limited purpose described in the £irst paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control o£ the Salina Airport Authority taken as a whole or on any o£ the categories o£ controls identi£ied in the £irst paragraph. However, our study and evaluation disclosed the following condition that we believe results in more than a relatively low risk that errors or irregularities in amounts that would be material in relation to the £inancial statements o£ the Salina Airport Authority may occur and not be detected within a timely period: There is no segregation o£ duties in the handling o£ cash receipts due to the limited number o£ o££ice personnel. This condition was considered in determining the nature, timing, and extent o£ the audit tests to be applied in our examination of the 1985 £inancial statements, and this report does not a££ect our report on the £inancial statements dated January 29, 1986. This report is intended solely £or the use o£ management .and the Federal Aviation Administration and should not be used £or any other purpose. A.H.LECKBAND & CO., CPA, CHARTERED ~Ji,~ Thomas G. Arnett CPA Page 28